Will This Announcement Make Google More Competitive?

To date, Amazon has been considered the best infrastructure-as-a-service provider because its service is built for developers to use with ease and the company continues to innovate and update its platform. But Amazon’s position is not invulnerable, and Google’s new service launch has forced the company to react. On November 1, The Register reported that the internet retailer had also cut prices and developed a second-generation of its virtual servers with increased memory and greater CPU power.

But according to Business Insider, start-ups are wary of Google’s Compute Engine because the product is still in limited preview or beta mode, and the company’s director of new products and solutions, Shailesh Rao, has said that there is no definitive date when it will leave beta. However, Compute Engine has received good reviews thus far, and Rao told Information Weekly that the service has seen “heavy signup by Silicon Valley startups.”

CHEAT SHEET Analysis: Google’s High Quality Pipeline

One of the core components of our CHEAT SHEET Investing Framework requires that companies consistently produce successful products or services. Google has built its reputation on the popularity of its services. According to data compiled by comScore, its search engine accounted for 66.9 percent of the search market in the month of October and its share of mobile advertising revenue amounted to 55 percent. But with Compute Engine, Google has been forced to play catch up with Amazon, lowering the price of the service to undercut its rival.

However, the Compute Engine is still in its infancy, Rao said that the company rarely had to sell potential clients on the reliability of its infrastructure. “We’ve built a beautiful house over the last 14 years,” he said. “Now we want people to come and stay as long as they want.”